DTN Midday Livestock Comments 08/22 12:18

DTN Midday Livestock Comments 08/22 12:18 Cattle Trade Regains Momentum at Midday Strong gains have flooded into cattle markets at midday Monday following early market pressure. The firm beef value support seen in the morning boxed beef report helped to draw cautious buyers from the sidelines. By Rick Kment DTN Analyst GENERAL COMMENTS: Strong gains have quickly developed across cattle trade at midday with prices moving from moderate to firm losses early in the session to triple-digit gains in nearby feeder cattle contracts. It is uncertain just how deep buyer support remains, but the focus on firming beef values may help spark additional volume to quickly step back into the market. Hog futures are lower at midday, as little additional support developed from cash markets. Corn prices are lower in light trade. September corn futures are 1 cent lower. Stock markets are mixed in light trade. The Dow Jones is 15 points lower while Nasdaq is up 2 points. LIVE CATTLE: Live cattle futures have quickly broken away from early losses as traders are looking for additional support through the complex and strong triple digit gains seen in feeder cattle futures. A strong bounce higher in boxed beef values seemed to shock most traders who pointed to the lower cash cattle markets last week and lackluster beef activity over the last few sessions. Continued support in beef values through the first half of the week could help spark additional interest into nearby futures trade. Cash cattle activity is quiet with show list distribution the main order of business through the morning. Show lists appear to be steady to larger in most areas, this is not a surprise is given the light to moderate trade last week. Trade is not expected to be seen until midweek or later. Beef cut-outs at midday are higher $0.52 higher (select) and up $1.64 per cwt (choice) with light movement of 86 total loads reported (33 loads of choice cuts, 10 loads of select cuts, 34 loads of trimmings, 9 loads of ground beef). FEEDER CATTLE: Strong gains have flooded into feeder cattle trade at midday despite the pressure holding across the complex through most of the morning. September through January contracts are now holding triple-digit gains based on the support in boxed beef values and potential support seen in the market surrounding overall light cattle placements, even though placements were higher than expected in Friday's cattle on feed report. It is uncertain at this point just how deep the buyer interest remains. Limiting traders confidence late morning, but still giving hope that renewed support may continue to develop. LEAN HOGS: Despite gaining moderate support early in the session, lean hog prices have eroded through the remainder of the trading session, holding 35 to 60 cent losses in nearby contracts. The back and forth shifts on a daily basis is becoming a pattern that appears hard to break at this point, as there is very little outside direction of fundamental activity that is able to shift market direction from the up and down pattern seen over the last week. Cash prices are lower on the National Direct morning cash hog report. The weighted average price fell $0.81 per cwt to $61.78 per cwt with the range from $55.00 to $64.00 per cwt on 6,362 head reported sold. Cash prices are lower on the Iowa Minnesota Direct morning cash hog report. The weighted average price fell $0.07 per cwt to $63.37 per cwt with the range from $55.00 to $64.00 per cwt on 2,263 head reported sold. The National Pork Plant Report reported 174 loads selling with prices gaining $0.88 per cwt. Lean hog index for 8/18 is at $67.22, down 0.10 with a projected two-day index of $67.02 down 0.20. Rick Kment can be reached at [email protected] (CZ) Copyright 2016 DTN/The Progressive Farmer. All rights reserved.